Undeletable Coercive Loan Apps First Hobble Then Shut Down Your Smartphone If You Fall Behind On Repayments

from the still-think-you-own-your-hardware? dept

The modern smartphone is a technological wonder, cramming into its compact form factor multiple functions -- phone, pager, computer, camera, calculator, diary, multimedia player, radio, TV, clock, maps, GPS, voice recorder, eBook reader, gaming device, WiFi hotspot, flashlight etc. etc. -- that required over a dozen separate devices a couple of decades ago. No wonder, then, that most people want one, and would like to buy a model that offers all these features. However, in many parts of the world, the price of a good smartphone represents a big chunk of their annual wages. The obvious solution is to take out a loan, but that typically requires a credit rating, and many people in those countries lack a credit history, and may not have a bank account. To get around that problem, companies have come up with a new kind of smart loan for the "unbanked", as they are known. A fascinating article on the Rest of the World site, about the Indian Datacultr app, explains how the system works:

the easiest way for retailers and online stores to get high-end devices into working-class people's pockets has been through a new method of lending: collateralizing smartphones. Vendors are selling smartphones to first-time borrowers on high-interest payment plans financed by loan companies, but only after users install an undeletable app at the point of sale. The apps can then monitor repayment behavior throughout the duration of the loan. One late payment leads to instant blocking of the phone, rendering it useless. For loan providers and smartphone sellers, this form of lending opens their products to a new class of consumers. But users purchasing phones on loan are bearing the brunt of the coercive repayment tactics built into their devices.

The lack of formal credit scores is addressed by using the undeletable loan app to spy on the smartphone user. By looking at how people are using the smartphone, and accessing their texts, images and location, the app can gauge how likely the borrower is to default on the loan. To prevent that, software like the Datacultr app uses "nudges" of increasing severity:

The app starts by sending audiovisual prompts in regional languages as reminders. If the user misses their first repayment, it forcefully changes the wallpaper on their cellphones. If Datacultr's data scrape reveals a user to be a prolific selfie-taker, for instance, the app will send notifications every time the camera function is opened. If the user continues to default on the loan, frequently used messaging and social apps like Facebook or Instagram are progressively blocked, severely restricting the use of the device and ultimately shutting down all of the phone's functionalities.

It's not just India where these loan apps are being rolled out. The Rest of the World article says that the US company PayJoy has licensed its smartphone locking technology to lenders in over 20 countries, for example in South America and Africa. Google, too, is active in Africa with its own app called "Device Lock Controller".

Although "collateralizing smartphones" may indeed allow the "unbanked" to acquire models that would normally be well beyond their budget, there are some obvious problems. The first is the intrusive and coercive nature of the nudges and shutdowns. Secondly, the approach requires people to give access to personal files on their smartphone in order to assess their creditworthiness in real time. In other words, they must give up their privacy in return for the loan.

Finally, it's worth noting that the use of undeletable apps that can take over control of the smartphone at any time means that people don't fully own their device. That's not a new problem: Techdirt was writing about it back in 2011. And in 2014 the New York Times noted that companies lending money for cars required starter interruption devices to be fitted that could immobilize the vehicle if people fell behind on repayments. What's new is that nowadays all that is required is that most mundane of 21st-century artifacts -- a smartphone app -- which not only watches you constantly, but can punish you for "bad" behavior with a variety of tailor-made digital tortures.

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Filed Under: apps, india, loans, ownership, smartphones

India's New Cyber Law Goes Live: Subtracts Safe Harbor Protections, Adds Compelled Assistance Demands For Intermediaries

from the out-with-the-good,-in-with-the-bad dept

New rules for social media companies and other hosts of third-party content have just gone into effect in India. The proposed changes to India's 2018 Intermediary Guidelines are now live, allowing the government to insert itself into content moderation efforts and make demands of tech companies some simply won't be able to comply with.

Now, under the threat of fines and jail time, platforms like Twitter (itself a recent combatant of the Indian government over its attempts to silence people protesting yet another bad law) can be held directly responsible for any "illegal" content it hosts, even as the government attempts to pay lip service to honoring long-standing intermediary protections that immunized them from the actions of their users.

Here's a really bland and misleading summary of the new requirements from the Economic Times, India's most popular business newspaper:

The guidelines propose additional responsibilities on social media companies. These include verifying users through mobile numbers, tracing origin of messages required by a court order and building automated tools to identify child pornography and terror-related content. All these requirements come under the ambit of under due diligence.

This sounds like pretty reasonable stuff. But it isn't because it goes much farther than what's summarized here and turns a whole lot of online discourse into potentially illegal content.

(a) belongs to another person and to which the user does not have any right to;
(b) is grossly harmful, harassing, blasphemous, defamatory, obscene, pornographic, paedophilic, libellous, invasive of another's privacy, hateful, or racially, ethnically objectionable, disparaging, relating or encouraging money laundering or gambling, or otherwise unlawful in any manner whatever;
(c) harm minors in any way;
(d) infringes any patent, trademark, copyright or other proprietary rights;
(e) violates any law for the time being in force;
(f) deceives or misleads the addressee about the origin of such messages or communicates any information which is grossly offensive or menacing in nature;
(g) impersonates another person;
(h) contains software viruses or any other computer code, files or programs designed to interrupt, destroy or limit the functionality of any computer resource;
(i) threatens the unity, integrity, defence, security or sovereignty of India, friendly relations with foreign states, or public order, or causes incitement to the commission of any cognisable offence or prevents investigation of any offence or is insulting any other nation.
(j) threatens public health or safety; promotion of cigarettes or any other tobacco products or consumption of intoxicant including alcohol and Electronic Nicotine Delivery System (ENDS) & like products that enable nicotine delivery except for the purpose & in the manner and to the extent, as may be approved under the Drugs and Cosmetics Act, 1940 and Rules made thereunder;
(k) threatens critical information infrastructure.

The new mandates demand platforms operating in India proactively scan all uploaded content to ensure it complies with India's laws.

The Intermediary shall deploy technology based automated tools or appropriate mechanisms, with appropriate controls, for proactively identifying and removing or disabling public access to unlawful information or content.

This obligation is not only impossible to comply with (and is prohibitively expensive for smaller platforms and sites/online forums that don't have access to AI tools), it opens up platforms to prosecution simply for being unable to do the impossible. And complying with this directive to implement this demand undercuts the Safe Harbour protections granted to intermediaries by the Indian government.

If you're moderating all content prior to it going "live," it's no longer possible to claim you're not acting as an editor or curator. The Indian government grants Safe Harbour to "passive" conduits of information. The new law pretty much abolishes those because complying with the law turns intermediaries from "passive" to "active."

Broader and broader it gets, with the Indian government rewriting its "national security only" demands to cover "investigation or detection or prosecution or prevention of offence(s)." In other words, the Indian government can force platforms and services to provide information and assistance within 72 hours of notification to almost any government agency for almost any reason.

This assistance includes "tracing the origin" of illegal content -- something that may be impossible to comply with since some platforms don't collect enough personal information to make identification possible. Any information dug up by intermediaries in support of government action must be retained for 180 days whether or not the government makes use of it.

More burdens: any intermediary with more than 5 million users must establish permanent residence in India and provide on-call service 24/7. Takedown compliance has been accelerated from 36 hours of notification to 24 hours.

Very few companies will be able to comply with most of these directives. No company will be able to comply with them completely. And with the government insisting on adding more "eye of the beholder" content to the illegal list, the law encourages pre-censorship of any questionable content and invites regulators and other government agencies to get into the moderation business.

Filed Under: censorship, content moderation, filters, free speech, general monitoring, india, intermediary liability, social media

Indian Government Requires Educational Establishments To Obtain Its Approval For The Subject Matter And Participants Of International Online Conferences And Seminars

from the hardly-an-edifying-sight dept

It would be something of an understatement to say that the COVID-19 pandemic has had a big effect on our lives. One sector where people have had to re-invent themselves is the academic world. Core in-person activities like lectures, seminars, and conferences have been forced to move online. One advantage of a shift to virtual gatherings is that people can participate from around the world. However, for governments, that's less a feature than a bug, since it means they have less control over who is taking part, and what they are saying. In response to this development, the Ministry of Education in India has issued "Revised Guidelines for holding online/virtual Conferences, Seminars, Training, etc." (pdf). An opinion piece in The Indian Express calls it the "biggest attack in the history of independent India on the autonomy of our universities":

When it is fully enforced -- and let there be no doubts over the government's resolve to be iron-handed when it comes to restricting people's democratic rights -- India will find itself in the company of dictatorial regimes around the world that despise liberty of thought and muzzle freedom of expression in their institutions of higher learning.

The new guidelines apply to all publicly funded higher education establishments. The key requirement is for international online conferences and seminars to avoid politically sensitive topics, specifically any related to problems along India's borders. Chief among these are disputes between India and China over borders in the north-east of India, which has recently seen skirmishes between the Indian and Chinese armies, and in Kashmir. Another ban, vague in the extreme, concerns "any other issues which are clearly/purely related to India's internal matters". As well as obtaining approval for the topics of planned online meetings, educational establishments must also submit a list of participants to be vetted. And once an approved conference or seminar has taken place, a link to the event must be provided. As The Indian Express column points out, these new restrictions are likely to hit Indian universities particularly hard:

Unlike their western counterparts, they are severely under-funded. They can neither organise many international conferences, nor send their faculty to participate in such events abroad. The recent boom in webinars has, hence, come as a big boon to them. It saves travel and hospitality costs and also overcomes the hassles of getting visas for invitees from "unfriendly" countries. Moreover, such events can be easily, and more frequently, organised even by institutions in rural and remote areas. Disturbingly, the government wants to curtail these major benefits of the digital revolution to millions of our teachers, students and scientists.

The Indian government's desire to control what is said, and by whom, is likely to harm the spread of knowledge in a country that was just beginning to enjoy one of the few benefits of the pandemic: easier access to international academic gatherings.

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Filed Under: academic freedom, china, conferences, free speech, india, pandemic

Free Access To Academic Papers For Everyone In India: Government Proposes 'One Nation, One Subscription' Approach As Part Of Major Shift To Openness

from the open-everything dept

Techdirt has been following the important copyright case in India that is about how people in that country can access academic journals. Currently, many turn to "shadow libraries" like Sci-Hub and Libgen, because they cannot afford the often hefty frees that academic publishers charge to access papers. If a new "Science, Technology, and Innovation Policy" (pdf), just released as a draft by the Government of India, comes to fruition, people may not need to:

The Government of India will negotiate with journal publishers for a "one nation, one subscription" policy whereby, in return for one centrally-negotiated payment, all individuals in India will have access to journal articles. This will replace individual institutional journal subscriptions.

That's just one of the bold ideas contained in the 63-page document. Here's another: open access to all research funded by the Indian taxpayers.

Full text of final accepted author versions of manuscripts (postprints and optionally preprints) along with supplementary materials, which are the result of public funding or performed in publicly funded institutions, or were performed using infrastructure built with the support of public funds will be deposited, immediately upon acceptance, to an institutional repository or central repository.

Similarly, all data generated from publicly funded research will be released as open data, with a few exceptions:

All data used in and generated from public-funded research will be available to everyone (larger scientific community and public) under FAIR (findable, accessible, interoperable and reusable) terms. Wherever applicable, exceptions will be made on grounds of privacy, national security and Intellectual Property Rights (IPR). Even in such situations, suitably anonymised and/or redacted data will be made available. In all cases, where the data cannot be released to the general public, there will be a mechanism to release it to bonafide/authorised researchers.

All publicly funded scientific resources will be made shareable and accessible nationally through digital platforms, including laboratories, supercomputing and AI facilities. Publicly funded open educational resources will be made available under a "minimally restrictive" open content license. Libraries at publicly funded institutions will be accessible to everyone, subject only to "reasonable security protocols".

Another idea is the creation of a dedicated portal (remember those?), the Indian Science and Technology Archive of Research, which will provide access to all publicly funded research, including manuscripts, research data, supplementary information, research protocols, review articles, conference proceedings, monographs, book chapters, etc. There will also be a national science, technology and innovation "observatory", which will establish data repositories and a computational grid, among other things.

It's an incredibly ambitious program, with an ambitious goal: "To achieve technological self-reliance and position India among the top three scientific superpowers in the decade to come." The other two superpowers being the US and China, presumably. Whether that program is implemented, wholly or even just in part, is another matter, and will depend on the lobbying that will now inevitably take place, and the usual budgetary constraints. But it is certainly impressive in the completeness of its vision, and in its commitment to openness and sharing in all its forms.

Comments on the proposals can be sent to india-stip@gov.in until Monday, 25 January, 2021.

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Filed Under: academic research, access to knowledge, copyright, india, learning, open access

Twitter Bans Sci-Hub's Account Because Of 'Counterfeit Goods' Policy, As Indian Copyright Case Heats Up

from the plainly-wrong dept

A couple of weeks ago, Techdirt wrote about an important copyright case in India, where a group of academic publishers is seeking a dynamic injunction to block access to the "shadow libraries" Sci-Hub and Libgen. The person behind Sci-Hub, Alexandra Elbakyan, has written to Techdirt with an update on the situation:

Sci-Hub account with 180K subscribers with almost everyone supporting it got BANNED on Twitter due to "counterfeit goods" policy. It existed for 9 years and it was frozen once, but I resolved it by uploading my passport scan. But now it is banned without the possibility to restore it, as Twitter support replied! And it happened right after Indian scientists revolted against Elsevier and other academic publishers, after Sci-Hub posted on Twitter about danger of being blocked - thousands of people spoke up against this on Twitter.

Now Twitter said to all of them, SHUT UP!

Although it's impossible at this stage to say whether Sci-Hub's Twitter account was closed as a direct result of action by Elsevier and other publishers, it is certainly true that the Indian copyright case has blown up into a major battle. The widely respected Indian SpicyIP site has several posts on the important legal and constitutional issues raised by the legal action. One of these concludes:

It can only be hoped that the court factors in the different considerations of a developing nation like India as against the developed nations where the defendant websites have presently been blocked, for it will have a massive impact on the research potential of the country.

While another goes further, and insists: "The ongoing litigation, therefore, must, on constitutional grounds if not copyright-related grounds, be decided in the favour of the defendants." Further support for Sci-Hub and Libgen has come from 19 senior Indian scientists and three organizations, and the Delhi High Court has agreed to allow them to intervene, as pointed out by TorrentFreak. In their application, the scientists wrote:

copyright is not merely a matter of private interests but an issue that deeply concerns public interest especially when it comes to access to learning materials... If the two websites are blocked it will effectively be killing the lifeline of research and learning in higher education in the country.

An organization called the Breakthrough Science Society has created a petition in favor of the defendants. The petition's statement says:

International publishers like Elsevier have created a business model where they treat knowledge created by academic research funded by taxpayers' money as their private property. Those who produce this knowledge -- the authors and reviewers of research papers -- are not paid and yet these publishers make windfall profit of billions of dollars by selling subscriptions to libraries worldwide at exorbitantly inflated rates which most institutional libraries in India, and even developed countries, cannot afford. Without a subscription, a researcher has to pay between $30 and $50 to download each paper, which most individual Indian researchers cannot afford. Instead of facilitating the flow of research information, these companies are throttling it.

Alexandra Elbakyan of Kazakhstan has taken an effective and widely welcomed step by making research papers, book chapters and similar research-related information freely available through her website Sci-Hub. Libgen (Library Genesis) renders a similar service. We support their initiative which, we contend, does not violate any norm of ethics or intellectual property rights as the research papers are actually intellectual products of the authors and the institutions.

As these comments from academics make clear, the stakes are high in the current legal action against Sci-Hub and Libgen. Against that background, shutting down Sci-Hub's Twitter account is ridiculous, since it is purely informational, and served as a valuable forum for discussing important copyright issues, including the Indian court case. Whatever you might think of the company's decision to suspend certain other accounts, this one is plainly wrong.

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Filed Under: academic research, content moderation, india
Companies: sci-hub, twitter

Elsevier Wants To Stop Indian Medics, Students And Academics Accessing Knowledge The Only Way Most Of Them Can Afford: Via Sci-Hub And Libgen

from the copyright-is-not-an-inevitable,-divine,-or-natural-right dept

Last month Techdirt wrote about some ridiculous scaremongering from Elsevier against Sci-Hub, which the publisher claimed was a "security risk". Sci-Hub, with its 85 million academic papers, is an example of what are sometimes termed "shadow libraries". For many people around the world, especially in developing countries, such shadow libraries are very often the only way medics, students and academics can access journals whose elevated Western-level subscription prices are simply unaffordable for them. That fact makes a new attack by Elsevier, Wiley and the American Chemical Society against Sci-Hub and the similar Libgen shadow library particularly troubling. The Indian title The Wire has the details:

the publishing giants are demanding that Sci-Hub and Libgen be completely blocked in India through a so-called dynamic injunction. The publishers claim that they own exclusive rights to the manuscripts they have published, and that Sci-Hub and Libgen are engaged in violating various exclusive rights conferred on them under copyright law by providing free access to their copyrighted contents.

Techdirt readers will note the outrageous claim there: that these publishers "own exclusive rights to the manuscripts they have published". That's only true in the sense that most publishers force academics to hand over the copyright as a condition of being published. The publishers don't pay for that copyright, and contribute almost nothing to the final published paper save a little editing and formatting: manuscript review is carried out for free by other academics. And yet the publishers are demanding that Sci-Hub and Libgen should be blocked in India on this basis. Moreover, they want a "dynamic injunction":

That is, once a defendant's website is categorised as a "rogue website", the plaintiff won't have to go back to the judges to have any new domains blocked for sharing the same materials, and can simply get the injunction order extended with a request to the court's deputy registrar.

The legal action by publishers against shadow libraries is part of a broader offensive around the world, but there's a reason why they may face extra challenges in India -- over and above the fact that Sci-Hub and Libgen contain huge quantities of material that can unambiguously be shared quite legally. As Techdirt reported back in 2013, a group of Western publishers sued Delhi University over photocopied versions of academic textbooks. For many students in India, this was the only way they could afford such educational materials. In 2016, the Indian court ruled that "copyright is not an inevitable, divine, or natural right", and that photocopying textbooks is fair use.

The parallels with the new suit against Sci-Hub and Libgen are clear. The latter are digital photocopy sites: they make available copies of educational material to students and researchers who could not otherwise afford access to this knowledge. The copies made by Sci-Hub and Libgen should be seen for what they are: fair use of material that was in any case largely created using public funds for the betterment of humanity, not to boost the bottom line of publishers with profit margins of 35-40%.

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Filed Under: academic publishing, academic research, access to knowledge, censorship, copyright, dynamic injunction, india, injunctions, publishers
Companies: american chemical society, elsevier, libgen, sci-hub, wiley